Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.
Back in the day, America had a manufacturing base that created products the world wanted to buy allowing us to be a lender Nation as opposed to a debtor nation. Now, the manufacturers are long gone to other shores leaving rusting hulks throughout the Nation's heartland. The bankers kept everyone under a false illusion during the 1990s and early 2000s with the Dot Com explosion and then later the real estate bubble.
Wealth appeared to be easily attainable for anyone wanting to work even a little bit. This was only false reality similar to a jobless man running up thousands of dollars of credit on his cards. While credit line is open, the world will think that jobless man is a baller. When the credit line is terminated, then he is now a jobless man -- with thousands of dollars of compounding debt.
America has been that jobless man for last 10-20 years with unlimited credit on an infinite number of credit lines allowing us to run up the largest debt in recorded human history. Now the credit lines have been terminated, leaving us as a country with no manufacturing base and a large consumer population racked with insurmountable debt and no credit prospects!
Source: New York Post
Image Source: David Dees